Tech China Post #47

China sees embedded technology core to its long-term leadership in artificial intelligence. It also sees embedded technology core to its national security. The government is challenging domestic companies such as well-funded Cambricon to become the leader in high-powered AI chip. Cambricon has raised more than $100m. (link)

Robotic companies around the world are looking to China as a key early adopter and commercial market. There are a number of factors that suggest that robotics will take off faster in China. The One-Child Policy that ended a few years ago will continue to ripple through society creating labor shortage among the young. The outsourcing industry continues to see pressure of lower price and shift to neighboring countries such as Thailand and Vietnam. (link)

Chinese regulators have drafted regulatory framework to provide oversight to “robo advisers” that offer machine-driven investment advise to domestic retail investors. The surge in interest and demand of wealth & asset management solutions in China has created a multi-billion dollar industry. (link)

Bank of China officials want to create “regulatory sandboxes” to help incubate and gain early insights into fintech innovation and startups. The concern largely stems from the significant rise in fintech solutions within the domestic market that today has limited set of regulatory rules and oversight, especially for retail banking. A regulatory sandbox can help regulators learn and can also help entrepreneurs build more rigorous fintech solutions taking into account potential regulatory orientation on new financial products. In 2016 alone, fintech venture investments in mainland China and Hong Kong have exceeded $10B. (link)